A New York bankruptcy judge agreed to recognize a Croatian insolvency proceeding initiated by Agrokor Group, a food and retail giant, but said he would reserve judgment on whether to fully enforce the company’s multibillion-dollar restructuring plan, WSJ Pro Bankruptcy reported. Following a hearing yesterday, Judge Martin Glenn approved Agrokor’s request for chapter 15 recognition. Judge Glenn decided not to enforce key parts of the company’s restructuring proposal, saying a court in London is likely a more appropriate venue to settle any disputes affecting debt governed by English law. The bulk of Agrokor’s unsecured debt is governed by English law, with the rest governed by U.S. law, court papers show. All new debt issued as part of the restructuring is to be governed by English law. The decision was a setback for Agrokor’s complex, multi-jurisdictional bankruptcy. Lawyers for the company had hoped to win full and final enforcement of the plan from Judge Glenn.
